Property Tax Reform

Property tax reform was Governor Braun’s top priority during the 2025 Legislative Session and it manifested itself in Senate Enrolled Act 1 (SEA 1). The Governor’s introduced version of this bill would have been the most significant property tax reduction since the property tax
caps of 2008 and would have been even more significant over time. Through session-long negotiations and advocacy from local government leaders, the final version of SEA 1 was still a significant property tax reduction. The vast majority of the property tax relief will be phased in over time and will be primarily for homeowners.

SEA 1 also included a total overhaul of the local income tax (LIT) statute moving it from a county-wide rate to a rate that can vary by municipality and allows some larger municipalities to adopt their own LIT rate. The new structure will be effective in 2028 and is creating uncertainty for local government planning and budgeting. Improving and clarifying this new process will be a top Aim legislative agenda item over the next two years prior to its implementation to ensure LIT distribution is fair and significant enough to overcome some of the
property tax cuts in SEA 1.

A full summary of SEA 1 can be found on page 45 of the 2025 Aim Statehouse Report.

Contact Us

Matthew Greller
Chief Executive Officer
mgreller@aimindiana.org
317-237-6200 x 224
Amy Krieg
Government Affairs Director
akrieg@aimindiana.org
317-237-6200 x 234
Campbell Ricci
Policy and Financial
Resources Director
cricci@aimindiana.org
317-237-6200 x 248
Property Taxes